Suspended Driver License - Will PIP Benefits Still Be Paid?

[JuSt ChEcKiNg]

We operate a small business out of the Detroit area, MI. One of our employee's was killed in a traffic accident in one of our business vehicles about a month ago. Normally there would be a number of different PIP benefits involved for beneficiaries of our deceased employee.

The spouse of this employee talked to us last week and indicated a concern because it was discovered that spouse was driving while having a suspended license.

Does anyone in this forum know if this situation would cancel out all potential benefits for the beneficiaries of the deceased?

Thank you in advance for any feedback you may have.

JuSt

 

[djs]

The answer is likely very specific to Michigan, so its going to be hard to get a firm answer. These kinds of rules vary from state to state.

Because of this, I have no idea. I didn't want you to think you are being ignored, its just a question that doesn't come up a lot and requires a state specific answer. In states I work in, I would have to call the carrier and find out.

Dan

 

[JuSt ChEcKiNg]

Thanks for your response DJS.

I guess a question that should have been posed in the original post would be ... where is it indicated that the driver has a suspended driver license? Would that reflect on the accident report .. I wonder?

The accident report has not yet been made available by the county the accident happened in. So ... everything is currently being handled by insurance company (from the sounds of it) as if all is fine.

 

[djs]

In a general sense, the question will come up if the suspended license had anything to do with the cause of the accident. If not (and it really doesn't), then it becomes an almost non-issue.

I say almost non-issue because there are a lot of little gotcha's, such as when was it suspended, was it a case of fraud to get the policy, etc. These types of questions will be looked at, usually briefly, and then a decision will be rendered.

Again, I don't know Michigan and its laws. This is a very state specific question.

Dan
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By the way, it doesn't matter what the police report says, suspended or not, the insurance company will likely pull the MVR report themselves as part of the investigation, if they have reason to suspect a problem somewhere.

Dan

 

[godzgreatgift78]

Insurance laws are different in each state. However, I do know that most states, PIP will payout regardless of the fault of the accident including if the drivers are licensed or unlicensed.

For example, in NY, if im unlicensed and I am at fault for an accident the insurance companies will still pay out for the injuries for people who are hurt in my car because they probably don't know im unlicensed. It is a stick situation, I would call up the insurance company and explain them the situation and someone who is licensed for Michigan would probably know best.

 

[Danette Key]

I think the damages to the other car or persons will be paid, but nothing to the person driving illegally, like medical expenses or damage to his or her own car.